The National Pension Commission (PenCom) has stepped up its enforcement efforts against employers that fail to remit workers’ pension contributions, recovering more than N3 billion from defaulting companies in Nigeria’s electricity sector.
The recovery, carried out in collaboration with the Independent Corrupt Practices and Other Related Offences Commission (ICPC), has seen the funds credited directly into the Retirement Savings Accounts (RSAs) of affected workers in line with the provisions of the Pension Reform Act (PRA) 2014.
PenCom described the exercise as a major breakthrough in its ongoing campaign to ensure compliance with pension laws and protect employees’ retirement savings. According to the commission, the success underscores the effectiveness of its partnership with the ICPC in tackling pension-related violations across the country.
The collaboration between PenCom and the anti-corruption agency was formalised through a Memorandum of Understanding (MoU) signed in October 2025. The agreement provides a framework for investigating pension-related offences, recovering outstanding pension contributions, and enforcing compliance with the Pension Reform Act.
The commission disclosed that the ICPC is currently investigating several private sector employers referred by PenCom over alleged breaches of the PRA 2014. It expressed optimism that additional recoveries would be made as the investigations progress.
Under the Pension Reform Act 2014, employers are legally required to deduct and remit pension contributions into employees’ Retirement Savings Accounts within seven working days after paying salaries. Employers who fail to comply are liable to sanctions, including the recovery of unpaid contributions, financial penalties, and possible prosecution.
PenCom urged employers, particularly those in the private sector, to settle all outstanding pension obligations and fully comply with the provisions of the law to avoid regulatory sanctions and enforcement actions.
The commission reaffirmed its commitment to safeguarding workers’ retirement savings by promoting strict compliance with the Contributory Pension Scheme (CPS). It stressed that pension deductions made from employees’ salaries must be remitted promptly to their respective Retirement Savings Accounts, ensuring contributors receive the full benefits of the scheme upon retirement.
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